21Shares Files for Spot XRP ETF, Joining Growing Wave of Crypto Fund Applications

Asset manager 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund, becoming the third firm to pursue such an investment vehicle. The proposed fund, dubbed the 21Shares Core XRP Trust, would be listed on the Cboe BZX Exchange with Coinbase Custody Trust Company serving as custodian.

The filing comes amid growing interest in cryptocurrency ETFs following the SEC’s landmark approval of spot Bitcoin ETFs in January and subsequent authorization of Ethereum ETFs. 21Shares joins Canary Capital and Bitwise in seeking regulatory approval for a spot XRP fund, reflecting the industry’s push to expand regulated crypto investment options.

The timing of these applications is particularly notable given the ongoing legal battle between the SEC and Ripple Labs. While a federal judge previously ruled that XRP is not a security in programmatic sales on exchanges, both parties are currently pursuing appeals. The SEC ordered Ripple to pay a $125 million fine in August after finding that institutional sales violated securities laws.

“21Shares remains committed to working towards expanding US investor access to the cryptocurrency asset class,” a company spokesperson stated, emphasizing their focus on driving innovation in the U.S. market. The trust is designed as a passive investment vehicle, offering investors indirect exposure to XRP without requiring direct cryptocurrency custody.

The broader crypto ETF landscape has seen increased activity in 2024, with firms like VanEck and Canary Capital also filing for spot Solana and Litecoin ETFs. However, the SEC’s response timeline remains uncertain, and decisions could potentially extend into the next presidential administration, when new leadership might take over at the regulatory agency.